Xiaomi issued a statement shortly after its funds were seized by the Enforcement Directorate and said all its payments are legit and truthful. 

Xiaomi logo is seen next to a smartphone of the same brand in this illustration taken September 28, 2021. REUTERS/Dado Ruvic(REUTERS) 

Xiaomi issued a statement on Saturday after the Enforcement Directorate seized ₹5551.27 crore of Xiaomi Technology India Pvt Ltd on charges of violating the Foreign Exchange Management Act. The company said as a brand committed to India, all its operations are “firmly compliant with local laws and regulations.”

“We have studied the order from government authorities carefully. We believe our royalty payments and statements to the bank are all legit and truthful. These royalty payments that Xiaomi India made were for the in-licensed technologies and IPs used in our Indian version products. It is a legitimate commercial arrangement for Xiaomi India to make such royalty payments. However, we are committed to working closely with government authorities to clarify any misunderstandings,” the statement said.